Proposed reductions to the 340B program became effective on Jan. 1, following a ruling late last week in federal district court to grant the government’s motion to dismiss a lawsuit brought by the American Hospital Association (AHA) and others seeking to prevent the payment cuts to hospitals participating in the 340B Drug Pricing Program.
The judge dismissed the case without ruling on the merits electing instead to hold that the court lacked jurisdiction because the plaintiffs did not exhaust their administrative remedies by first presenting the Department of Health and Human Services (DHHS) with a tangible claim for reimbursement.
The AHA and other plaintiffs plan to continue to exhaust their legal options, including appealing the recent decision and refiling the lawsuit now that the reductions have gone into effect. Additional information will be shared when it becomes available.
In addition, legislation that would negate the policy, H.R. 4392, has garnered 165 cosponsors in the U.S. House and we are encouraging our Congressional delegation to support this bill. For more information and to review a list of frequently asked questions related to the application of the required modifiers that became effective Jan. 1, click here.
